IRR (Values, Guess?) IRR (Values; Guess?)
Values
An array containing the payments made or received, at regular intervals.
Guess
Number Number (optional)
A first guess at the rate. If omitted, 10% (0.1) is assumed.
Returns
Number Number
The internal rate of return of a series of cash flows.
Calculates the internal rate of return (IRR) of a series of equally spaced cash flows. The IRR is the discount rate at which the net present value of the cash flows equals zero. The array must contain at least one negative and one positive value.
Example
Returns roughly 11.12%. Suppose you invest $8,000 today and receive $2,500 after one year, $3,500 after two years and $4,000 after three years. The annual rate of return that makes the net present value of these cash flows equal to zero is roughly 11.12%.